By Lisa Brown
HOUSTON—Although many were not so lucky, Buchanan Street Partners and Boxer Property report that office assets did not sustain any flood damage and give high praise to property management teams for heroic efforts.
Before Hurricane Harvey, there was increasing opportunity in Houston’s office sector as a result of the distress in the energy sector, according to Buchanan Street Partners. After Harvey, how are those investments holding up?
“We will all have to take a breath about what’s happened with Harvey,” Robert Dougherty, partner at Buchanan Street Partners, tells GlobeSt.com. “But our properties have survived relatively unscathed.”
The three properties owned by Buchanan Street Partners are Sam Houston Crossing II, the Offices at Kensington and 2100 W. Loop South.
Sam Houston Crossing is a 160,000-square-foot office building located at 10344 Sam Houston Park Dr. that was acquired by Buchanan earlier this year. The property has frontage along Texas-8 Beltway between US 290 and State Highway 249, in a location central to housing ranging from entry to executive level.
Buchanan Street Partners acquired the Offices at Kensington, a two-building class-A property in Sugar Land, TX in 2012. The 170,774-square-foot office property, located at the intersection of State Highway 6 and US Highway 59, has a 10-year occupancy average of 92%. It is located on a 15-acre lake with decorative fountains, 2-1/2 mile walking path, and has covered and uncovered parking with on-site property management in First Colony.
2100 West Loop South is a 16-story class-A office property located in the Galleria. This retail and entertainment complex offers dining and shopping, hotels and athletic facilities. The 16-story property has 162,336 square feet of space, with the typical floor plate at 10,500 square feet. The West Loop South asset was built in 1974 but renovated in 2014.
“We were very fortunate that all three of our Houston assets did not sustain any flood damage, unlike so many others throughout the metro area,” Mark Oddo, senior vice president at Buchanan Street Partners, tells GlobeSt.com. “Our property management teams through Transwestern did a superb job of securing the properties and informing tenants on a regular basis. In particular, at our Galleria asset (2100 W. Loop South), the building engineer stayed onsite at the property for several days and nights (he slept at the building) to make sure the building did not sustain any damage from rising floodwaters in the area.”
In addition, Houston-based commercial real estate firm, Boxer Property, is also open for business at 95% of its 58 Houston properties. After its first priority to confirm the safety of all Boxer employees, property assignments were made to inspect property grounds and buildings for flooding and water damage. With some special logistics planning, management and maintenance staff made adjustments to their regular assignments to assess properties close to their homes or from accessible freeways. As of early last week, all properties had been inspected to ensure the safety and availability for customers to return to work.
“Boxer has been extremely fortunate. All employees and property staff have been accounted for and we’ve avoided any significant property damage, so far” said Marc Vecchio, operations director of Boxer Property. “We’re continuing to assess our properties and are ready for our tenants to return to their offices.”
Boxer Property recognizes that many other businesses have been impacted by the flooding and has made special pricing and short-term office space available for those displaced by Harvey. Helping the community stay safe and recover is its priority, the company says.
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